Module Anotation

This courses  represents an analysis of the managerial accounting followed by companies.   It provides a deep overview into the methods used to account for costs, apportion and analyse costs, prepare and verify a budget and all the other techniques used in order to control internally the management of resources. After completion of the course, students will be able to successfully understand the main theoretical and especially practical issues connected with Managerial Accounting and  Costs in general.

The aim of the course is to develop competencies in management accounting; to understand its role in organizations’ management, to be able to use accounting information for decision making and management control, to measure business performance and to apply accounting methods in budgetary control and process management. Upon successful completion of this course, students will be able to identify, measure, analyze and interpret relevant accounting information for managers, to explain fundamental dimensions of financial position and business performance, to describe determinants and design structure of management accounting system and apply management accounting tools, methods and systems, esp. product costing for decision making and cost management, cost assignment methods, budgeting and budgetary control and performance measurement system.

 

Module Targets

The aim of the course is to develop competencies in management accounting; to understand its role in organizations’ management, to be able to use accounting information for decision making and management control, to measure business performance and to apply accounting methods in budgetary control and process management. The aim of the course is to explain the fundamentals of management accounting - budgeting, standard costing and cost accounting.

Learning outcomes and competences:

Upon successful completion of this course, students will be able to

  • identify, measure, analyze and interpret relevant accounting information for managers
  • explain fundamental dimensions of financial position and business performance
  • describe determinants of management accounting system design and arrange external links and internal structure of management accounting system
  • distinguish substance and structure of costing information for decision making and cost management, define principles of cost assignment related to specific decision-making tasks and apply relevant methods of cost allocation including activity-based-costing
  • develop the budget for organization and responsibility centers and apply standard costing method for budgetary control and design performance management system based on financial and non-financial indicators

 

At the end of this course, students should be able to

  • understand the role of management accounting;
  • alocate costs to products, services or activities;
  • prepare budgets;
  • analyse customers profitability;
  • design a simple performance measurement system;
  • interpret data gathered in corporate measurement systems

 

Syllabus

  • Evolution of managerial accounting.
  • Cost behaviour.
  • Cost classifications and overheads allocation.
  • Activity based costing
  • Standard costing.
  • Responsibility accounting.
  • Customer profitability analysis.
  • Strategic maps, Balanced Scorecard and non-financial measures
  • 1) Introduction
  • 2) Costs, Expenses, Revenues
  • 3) Costing, cost tracing
  • 4) Cost Allocation
  • 5) Budgets and Budgeting
  • 6) Budget Evaluation
  • 7) Responsibility Accounting
  • 8) Costing, (preliminary, operating, final)
  • 9) Budget (Plannded, Final, Deviances)
  • 10) Internal P/L Statement
  • 11) CVPdecision making
  1. Determination, development and approaches to managerial accounting (historical development of accounting and decisive moments in its history, relation to financial, cost and tax accounting, dual relationship between financial and managerial accounting).
  2. Classification of costs and revenues (type, purpose, effect on decision-making, opportunity costs and revenues).
  3. Costing (basic costing terms, methods, purpose of costing and cost tracing for management, revenues and profit, cost system, variable x absorption costing).
  4. Cost allocation (allocation targets and principles, allocation phases).
  5. System of plans and budgets and their importance to managerial accounting (basic terms – plan, budget, company policy, budget functions and forms).
  6. Budgeting (budget design and control, budget analysis, deviations – quantitative x qualitative x of structure change).
  7. Standard costing (basic terms, types of differences, norm method, method of standard costs).
  8. Responsibility accounting (competencies and responsibilities, economic and organizational structure of a company, motivational approach to responsibility management).
  9. Management of responsibility centres (participation of centres, transfer price).
  10. CVP analysis (assumptions for CVP, decision making and CVP, CVP and sensitivity analysis, decision making under constraints and multiple constraints).
  11. Capital investment decision making (risk, time, liquidity, cash flow).
  12. Strategic management accounting (BSC, TQM, TC, JIT).

 

Recommended Literature

ATKINSON, A. A., KAPLAN, R. S., MATSUMURA, E. M., YOUNG, M. S. Management Accounting. 6th Edition, New Jersey, USA: Pearson Prentice, 2011. ISBN 978-0-13-7024971. info

Horngren, Ch.,T., Sundem, G., L., Schatzberg, J., O., Burgstahle. Introduction to Management Accounting. 16th Edition, Prentice Hall, 2013. ISBN 978-0133058789. info

GOLDRATT, E., M. The Choice. The North River Press, 2008. ISBN 987-0-88427-189-5. info

GOLDRATT, E., M. The Goal. The North River Press, 2004. ISBN 0-88427-178-1. info

GOLDRATT, E., M. Critical Chain. The North River Press, 1997. ISBN 987-0-88427-189-5. info

GOLDRATT, E., M. Theory of Constraints. The North River Press, 1990. ISBN 0-88427-166-8. info

GOLDRATT, E., M., FOX, R., E. The Race. North River Press, 1986. ISBN 0-88427-062-9. info

Pietro Andrea Podda, Ph.D.

Pietro Andrea Podda, Ph.D.---

Lektor anglických programů na European Business School SE a Ústavu práva a právní vědy, o.p.s.

Pietro Andrea Podda is a lecturer of financial and legal subjets at various universities in the Czech Republic.